Case Study: FEED Over-Specification Report for Oil & Gas Project
Client Overview
A leading international oil and gas operator engaged our team to support the design review phase of a major upstream infrastructure development. The client sought to improve cost efficiency and ensure that engineering specifications were aligned with actual operational requirements.
Challenge
During the Front-End Engineering Design (FEED) phase, the client identified a recurring issue: specifications were frequently exceeding the minimum requirements of applicable engineering standards. This over-specification was contributing to inflated project costs without delivering proportional benefits in safety, quality, or operability.
Solution
We introduced a structured FEED Over-Specification Report as part of the Project Proposal review process. The report was designed to:
Identify over-specification: Highlight components, materials, or systems specified beyond the minimum requirements of mandatory engineering standards.
Recommend alternatives: Propose cost-effective, industry-standard solutions that meet functional needs without compromising safety or performance.
Implementation
The Over-Specification Report was integrated into the Project Proposal package and distributed to key stakeholders, including the Project Sponsor and Project Management Office (PMO). Each report included:
Detailed findings: A breakdown of over-specified items with references to applicable standards.
Impact analysis: Assessment of cost, schedule, and operational implications.
Alternative recommendations: Suggestions for compliant, lower-cost options aligned with industry best practices.
Results
Cost Savings: The client achieved measurable reductions in material and procurement costs.
Improved Design Discipline: Engineering teams adopted a more rigorous approach to specification justification.
Stakeholder Confidence: Enhanced transparency and accountability in design decisions.
Conclusion
The FEED Over-Specification Report proved to be a valuable tool in driving cost-effective engineering for the oil and gas sector. By aligning specifications with functional requirements and industry standards, the client was able to maintain high performance while optimizing project economics.